Accounting MCQ Questions and Solutions with Explanations

Section 1 Section 2 Section 3 Section 4 Section 5 Section 6 Section 7 Section 8 Section 9 Section 10 Section 11 Section 12 Section 13 Section 14 Section 15 Section 16 Section 17 Section 18 Section 19 Section 20 Section 21 Section 22 Section 23 Section 24 Section 25

1.
Cash selling of stock to current ratio-

A. Increases

B. Reduces

C. Remains unaffected

D. None of these

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2.
Assertion (A): Sinking fund is a charge against profit and loss account.
Reason (R): Sinking fund is created for repayment of a long-term liability.
Which of the following statements is correct?

A. (A) is correct, but (R) is incorrect

B. Both (A) and (R) are correct

C. (A) is incorrect, but (R) is correct

D. Both (A) and (R) are incorrect

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3.
Sale of long term investment indicates:

A. a change in current assets

B. application of funds

C. increase in working capital

D. source of funds

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4.
Which of the following is a non operating expense?

A. Salary of Managing Director

B. Depreciation

C. Advertisement expenditure

D. Interest on loan

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5.
In the case of dissolution of a firm, which one of the following statements is correct?

A. All the types of assets are not transferred to Realisation A/c

B. Accumulated Profit & Loss is transferred to Realisation A/c

C. All the types of assets are transferred to Realisation A/c

D. Contingent liabilities are transferred to Realisation A/c

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6.
Indicate the item that appears in the surplus account

A. Proposed dividend

B. Provision for taxation

C. Contribution to provident fund

D. None of these

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7.
Consider the following statements.
1. Inventory includes raw material, finished goods and goods in process.
2. Inventory is the part of working capital.
3. Inventory includes goods likely to be purchased in the coming months.
Which of the statements given above are correct?

A. Both 1 and 2

B. Both 2 and 3

C. Both 1 and 3

D. All of the above

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8.
Which of the following is not incorporated in the Partnership Act?

A. Profit and loss are to be shared equally

B. No interest is to be charged on capital

C. Allloans are to be charged interest @ 6%p.a

D. All drawings are to be charged interest

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9.
A and B are partners sharing profits in the ratio of 2 : 1 They admit C who agrees that his share of goodwill Rs. 15,000 be debited to his capital he is required to bring in. The future profit sharing ratio of A, B and C will be 2 : 3 : 3 respectively.
A's Capital account in lieu of goodwill will be credited by:

A. Rs. 10,000

B. Rs. 15,000

C. Rs. 16,533

D. Rs. 16,667

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10.
The primary function of the book-keeping is to

A. Designing the system of recording the transactions

B. Assigning the responsibility to accountant

C. Recording of financial data

D. Classifying the recorded data

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Accounting MCQ Questions and Solutions with Explanations | Commerce

1. Cash selling of stock to current ratio-

Answer & Solution

2. Assertion (A): Sinking fund is a charge against profit and loss account. Reason (R): Sinking fund is created for repayment of a long-term liability. Which of the following statements is correct?

Answer & Solution

3. Sale of long term investment indicates:

Answer & Solution

4. Which of the following is a non operating expense?

Answer & Solution

5. In the case of dissolution of a firm, which one of the following statements is correct?

Answer & Solution

6. Indicate the item that appears in the surplus account

Answer & Solution

7. Consider the following statements. 1. Inventory includes raw material, finished goods and goods in process. 2. Inventory is the part of working capital. 3. Inventory includes goods likely to be purchased in the coming months. Which of the statements given above are correct?

Answer & Solution

8. Which of the following is not incorporated in the Partnership Act?

Answer & Solution

Answer & Solution

10. The primary function of the book-keeping is to

Answer & Solution

Read More Section(Accounting)

1.
Cash selling of stock to current ratio-

2.
Assertion (A): Sinking fund is a charge against profit and loss account.
Reason (R): Sinking fund is created for repayment of a long-term liability.
Which of the following statements is correct?

3.
Sale of long term investment indicates:

4.
Which of the following is a non operating expense?

5.
In the case of dissolution of a firm, which one of the following statements is correct?

6.
Indicate the item that appears in the surplus account

7.
Consider the following statements.
1. Inventory includes raw material, finished goods and goods in process.
2. Inventory is the part of working capital.
3. Inventory includes goods likely to be purchased in the coming months.
Which of the statements given above are correct?

8.
Which of the following is not incorporated in the Partnership Act?

10.
The primary function of the book-keeping is to